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On January 1 , 2 0 2 4 , Adams - Meneke Corporation granted 3 0 million incentive stock options to division managers, each permitting
On January AdamsMeneke Corporation granted million incentive stock options to division managers, each permitting holders to purchase one share of the company's $ par common shares within the next six years, but not before Decer the vesting date
The exercise price is the market price of the shares on the date of grant, currently $ per share.
The fair value of the options, estimated by an appropriate option pricing model, is $ per option.
Management's policy is to estimate forfeitures.
No forfeitures are anticipated.
Ignore taxes.
Required:
Determine the total compensation cost pertaining to the options on January
Prepare the appropriate journal entry to record compensation expense on December
Unexpected turnover during caused an estimate of the forfeiture of of the stock options. Prepare the appropriate journal entrys on December and in response to the new estimate.
Complete this question by entering your answers in the tabs below.
Prepare the appropriate journal entry to record compensation expense on December
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field. Enter your answers in millions rounded to decimal place ie should be entered as
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